Identify a Factor That Encourages the Use of Centralized Decision

question 1

Multiple Choice

Identify a factor that encourages the use of centralized decision making in subsidiary operations.

• A) Little experience in international business
• B) Moderate to low degree of technology
• C) Small geographic distance between home office and subsidiary
• D) Little importance attached to brand name and patent rights

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Definitions:

Deposits

Money placed into a financial institution for safekeeping, which may earn interest over time.

Investment Plan

A financial strategy designed to help individuals allocate their capital towards investment vehicles with the aim of generating future profits.

Present Value

The present value of an anticipated amount of money or sequence of financial inflows, discounted by a particular return rate.

Payments

Amounts of money that are paid or due to be paid by one party to another for goods provided, services rendered, or debt obligations.